After getting the word from a record company exec that they were going to Las Vegas to sing in the rap contest and were looking to be signed up to his label should they win, the Leprechaun (Warwick Davis) arrives with his hypnotized henchwomen. He forces Postmaster P (A.T. Montgomery) to hand over the flute, in exchange for not making Stray Bullet (Rashaan Nall) shoot Butch (Red Grant). Postmaster hands it over, but when he tries to stop the Leprechaun as he is leaving, the Leprechaun makes Stray Bullet shoot and kill himself.
Postmaster and Butch initially give up on their dreams, but the next day, Butch comes to Postmaster's home because he had a feeling that he was going to go after the Leprechaun and attempt to steal the flute back, and he wanted to help him because he didn't want him to go at it alone. Butch then says he did some reading on Leprechauns, and he says that if they have him smoke some joints he made that were laced with four-leaf clovers, his powers would be temporarily negated long enough for them to steal the flute back. To get close to him, they decide to dress up like women, since he always had women come up to his dwelling above a trendy nightclub (though they never came back down). They head to the club, and after freeing the Leprechaun's hypnotized henchwomen from his spell with the clover-laced joints, they tell them where the Leprechaun is.
They head upstairs to the Leprechaun's dwelling, and with the joints manage to steal the flute back, but when they get back down to the club Butch is shot and killed by Mack Daddy (Ice-T). Mack Daddy shows Postmaster the medallion that made the Leprechaun a stone statue when he wore it, and tells him they need to work together to get rid of the Leprechaun. Postmaster doesn't listen and shoots him down. The Leprechaun appears, demanding his flute back, but Mack Daddy gets up, knocks the Leprechaun down, and goes to put the medallion on him. The Leprechaun blasts a hole in Mack Daddy's body, killing him, but it causes the medallion to go flying in the air. As it comes down on the Leprechaun, he screams, and the screen goes black.
It then shows Postmaster in a club, doing a rap number that draws applause from the crowd, but when he takes off his glasses to wipe the sweat off his head, his eyes glow green. It then shows the Leprechaun off-stage, indicating that the medallion missed its mark and he now had Postmaster under his control.
Thanks Tornado Dragon!